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IT/IS trends in Airline Industry
Advanced Information Systems and Business Analytics for Air TransportationM.Sc. Air Transport Management
May 16-21, 2016
Slides prepared by Benny Mantin
Recent revolutions affecting IT
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Innovative products for consumer markets
Recent revolutions affecting IT
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De-centralization of aviation IT
Data management; Infrastructure; Analytics & Visualization
PwC: 71% of airline CEOs are developing strategies fortheir data and analytics; 26% already have programmes
Big data
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Source: Accenture 2015
Customer data
Required for understanding demandCustomization and personalization
5Sabre
Airline IT Spending Remains Stable
2014 AIRLINE IT TRENDS SURVEY | © SITA 6
Although IT spending as a percentage of revenue has slightly dropped in recent years, the absolute amount has been increasing due to rising industry revenues.
Still, lower than historical height of 2.5+% in early 2000s
IT investment Widespread budget increases
There is widespread recognition of the positive impact technology is having on air travel and its role in helping airlines stay ahead of the competition
2014 AIRLINE IT TRENDS SURVEY | © SITA 7
TECHNOLOGY MAKES TRAVELLING EASIER
SITA, Passenger IT Trends Survey 2013 8
Mobile DevicesDisruptive technology100% of airlines are investing in the mobile spaceonly around 40% of airlines think mobile services are performing at least “as expected”over one-third of airlines do not actively track many of the key performance indicators, such as cost savings, usage data, download stats, or revenue generation.
2014 AIRLINE IT TRENDS SURVEY | © SITA 9
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Ancillary Services98% of airlines plan to invest in ancillary service expansion in the next 3 yearsCurrently 37% of ancillary sales come through websites, while 2.4% are via mobile phones
2014 AIRLINE IT TRENDS SURVEY | © SITA 11
Mobile servicesCan offer targeted/personalized servicesReal-timeValue-added services:– Flights status– Baggage– Disruption management
2014 AIRLINE IT TRENDS SURVEY | © SITA 12
Mishandled bags, 26 million in 2012, cost airlines nearly $3 bn.
Self-ServiceNowadays 30% book tickets through airlines’ websitesCheck-in follows a similar path: – 38% use mobile, kiosk or web, up
from 28% in 2010)– Wide variability– Cultural, infrastructure differences
Next: self-service baggage, disruption management
132014 AIRLINE IT TRENDS SURVEY | © SITA
Disruption management – one such experience:
Flight overbooked, delayedOnce seated, I grabbed phone to
switch to flight modeExactly then got an SMS: your
flight has been delayed…
The connected airlineCurrent approach: mostly independent
management of data
Connected airlines:– Make critical information
readily available to all stakeholders
Source: PwC 14
The connected airline
Optimizing the turn cycle according to PwC
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GOING MOBILE
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Mobile: penetration and apps
18 Source: SITA
Types of mobile services
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Additional
20‐30%“Maybe” use mobile services
Source: SITA
Passengers might not be ready to use it for sensitive information!
A promising opportunity for airlines
Definitely use May use
Popularity: mobile vs other channels
20 Source: SITA
Web bookings
Mobile still behind, but trending up!
Flight info updatesMobile is preferred channel
On a conf. trip to SLC I signed up for the service. I received the delay update while on the plane moments before the flight took off…
Passengers want to stay connected on board
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Interest in in-flight services on mobile devices
Source: SITA
IT/IS time horizon
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Short term
Long term
Web improvements
Deeper adoption/integration of mobile services
The connected airline
IATA’s NDC
Cloud computing
De-centralization of IT
Data Analytics & Visualization
RFID
Wearable devices
Additive manufacturing (3D printing)
IT: a top area for change
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